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Mackinac Center for Public Policy
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2011 Senate Bill 351: Earmark some sales tax to roads

Public Act 225 of 2012

  1. Introduced by Sen. John Proos, IV (R) on May 3, 2011, to earmark a portion of sales tax revenue to road projects. Specifically, the bill would allocate 18 percent of collections from the first 4 percent of the 6 percent state sales tax. (Under the 1994 Proposal A initiative, the next 2 percent of this tax all goes to schools). The bill would not change current law provisions directing 15 percent of that first 4 percent to to state revenue sharing to local governments, and 60 percent of it to schools.
    • Referred to the Senate Transportation Committee on May 3, 2011.
      • Reported in the Senate on June 15, 2011, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  2. Passed 26 to 11 in the Senate on March 27, 2012, to earmark a portion of sales tax revenue to road projects. Specifically, the bill would allocate 18 percent of collections from the first 4 percent of the 6 percent state sales tax for roads. Depending on the average price of fuel, this would provide between $100 million and $140 million for roads (or more if prices go higher).
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on March 27, 2012.
    • Referred to the House Transportation Committee on March 27, 2012.
      • Reported in the House on May 2, 2012, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
    • Substitute offered in the House on June 6, 2012. The substitute passed by voice vote in the House on June 6, 2012.
    • Substitute offered by Rep. David Agema (R) on June 6, 2012, to replace the previous version of the bill with one that caps the proposed earmark at $100 million annually. The substitute passed by voice vote in the House on June 6, 2012.
  4. Passed 71 to 37 in the House on June 7, 2012, to earmark up to $100 million of sales tax revenue realized from fuel sales to road projects each year, based on a formula specified in the bill.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on June 12, 2012.
  6. Passed 26 to 11 in the Senate on June 12, 2012, to concur with the House-passed version of the bill, which caps the proposed earmark at $100 million per year.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on June 25, 2012.

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